Explained: How to Calculate Weighted Average Cost of Capital (WACC) in Valuation
In finance and investing, WACC stands for Weighted Average Cost of Capital. WACC is a very important number because it plays a huge part in the valuation of companies and projects.
How Short Selling Works (Finance)
In finance, short selling or just “shorting” is betting that something will fall in price. In this video we explain how it works using a simple example.
What is a bond?
In finance, a bond is a contract between a business which needs money (e.g. to fund their growth) and an investor who wants to receive an income stream plus their cash back in time.
Better Than Warren Buffett: How $10k Becomes $500m
Better than Warren Buffett. Turning $10k into $500m isn’t easy. Is this man the BEST investor ever to walk the earth?
What is Return on Equity (ROE)?
Return on Equity or ROE is a financial measure which tells you how much profit is being generated for every dollar investors have contributed.
Why Is The All Ordinaries and ASX 200 In Points And Not Dollars($)?
Many stock market indices, like Australia’s All Ordinaries (XAO) and S&P/ASX 200, are expressed in points and not dollars ($).
How do Share Broking Accounts Work?
Think of share broking accounts as the lovechild of an auction site like Ebay and your online or internet banking.
What does EBITDA & EBIT mean?
EBITDA means Earnings before Interest, Taxes, Depreciation & Amortisation, it is often called ‘operating profit’ and is frequently used by analysts and CEOs. Here’s how to calculate it.
How to add money to superannuation
There are two simple ways to contribute or add money to superannuation.
Why do Australians Contribute to Super?
Superannuation is the Australian Government’s answer to creating a sustainable retirement strategy for our growing population. To encourage us to grow our retirement nest egg, the Government has made Super a very attractive place to invest our money.
Return on Investment (ROI) Explained
ROI stands for Return on Investment and is one of the simplest and most versatile ratios to compare the profitability of investments. The formula to calculate ROI is the net return from an investment divided by its cost.
What is a stock market crash?
Defined: A stock market crash / share market crash is a rapid sell-off or falls in asset prices, like shares / stocks, bonds or property.